Pablo Conde, an insurance expert with 36 years of experience under his belt, paints what might appear to be a bleak picture for saving money on workers' compensation coverage. "There are two states that control everything, the rates, the policies, all of it. There are a few, like Florida, where the state dictates the rate. There are others where businesses can set the rate on a scale depending on the amount of risk," Conde explains to us. It doesn't sound like you can reduce your bill. But Conde himself tells us that you can save, even if you're in a state that dictates every step of the process.

Getting Covered

It all starts, Conde tells us, with the agent. "You want an agent that knows the state, knows the rules, and can get you a good policy," he clarifies, and makes an important point. Many businesses aren't familiar with the worker's compensation laws of their state, beyond knowing that the coverage is required, so a good agent "...will be able to explain the laws and how they apply to you." If they can't do that, Conde tells us, that's a red flag and you should find another agent.

But if the state locks in the rates ... how can even the best agent save you money? The short answer is that the rate on the page isn't the rate your business can get.

A Deal From The State

Businesses need to remember why the state is locking in rates in the first place, Conde tells us. "States want you to have workers' compensation coverage, because it's good for your business and your employees." So, Conde points out, "they've got laws in place that make it cheaper for businesses that understand that."

No matter what, you can get the coverage you need.

One example he explains to us is a customer who gets a stunning deal on his Florida workers' compensation insurance. "For example, one of my clients is paying 49% of the state rate; he's been in business for a number of years and hasn't seen any claims, and that lowers his rates. So it's not everyone is paying the same rate, even if the state regulates what you pay." We asked if he saw a claim whether that would raise his rates, and Conde conceded that it was a possibility but that "the better your record, the more the state is willing to work with you."

A Deal Worth Looking For

Above all, Conde notes, you need the right agent. "In the insurance industry there's a term, where somebody is called a "rate-picker." He'll just fill out the form and go on a fishing expedition hoping he gets a quote. An agent will ask you questions about your business and look for a policy that fulfills your business." Conde says to look for the agent who uses industry terms, and if a good agent isn't familiar with what you need, he'll refer you directly to somebody that he or she thinks will get you what you need. And with the right agent, you'll see the best savings.